W6A

Running Head: FUNDING PLAN 2

FUNDING PLAN 2

Funding Plan

Funding Plan

Current Income Statement

The library income statement can be regarded as a major tool that can be used in turning long dreams a reality. It is out of the income statement that the services that will be offered by the library will be determined and devoted to the library program. Therefore, well thought and carefully developed income statement will be vital in ensuring that any available fund has been utilized in the required manner and towards achieving the existing goals. The current funding request will be channeled towards the program trustees since funding is one of the responsibilities they are supposed to be working on (Stiglitz, 2017). The existing public library services in the county, and also at the national level will be requested to support quite a several activities that will require financial assistance for the library to run smoothly.

Smaller governments, like ward and county governments, should make allocations to the library, and reimburse them because it is one of how the lives of the people are enhanced. The payment/funding requests are supposed to be submitted by 1st July because this is when a fiscal year normally starts. Also, the municipalities should find a way of exempting themselves from the library taxes. This will help the library run its services with little revenue that might have been collected.

Fines upon violation of any policy set by the library can serve as one of the best ways of generating revenue for the library. By insisting on fining those violating the policies, will ensure that people are adhering to the set rules and policies at any given time. A handful amount can be collected from the fines.

Future Funding Requirements Over the Next 5 Years

There exists multiple anticipated intended use of the current funding requests in the next five years. The first and major use of the funds will be purchasing new equipment. The library might be designed to serve the primary school pupils in the community. However, the kids are also growing and after some years, they will be in secondary school. The same kids will need the library. Hence, purchasing new equipment, as a way of preparing for their future well-being is the way to go and it comes with the following advantages.

The purchase will uphold the efficiency of the service delivery and productivity. Having up-to-date resources will render the place quality for any person because they will be able to get anything that they need. This will increase productivity chances. Besides, more assets will be reaching the business, retaining all possible clients. Secondly, the purchase of new equipment creates a good working environment. The clients, as well as the employees, will have an opportunity of working efficiently with all necessary resources at hand. The purchase will also uphold workplace safety. The chances of facing problems and difficulties when dealing with old and outdated machines are very high. When there are new machines, safety is guaranteed and even quality services are offered.

The second use of the funds in the next five years is utilizing them as working capital. Working capital can be defined as the sum of money which is used in day-to-day activities and operations. The presence of enough working capital comes with several advantages. The first advantage is that it facilitates flexibility within the business or the organization, and this, in turn, enhances customer satisfaction. The running of a business is not always smooth. There are times when the business is not going on well and extra funds are needed to ensure that everything goes back to normal. At such times, the working capital provides a cushion to ensure that everything goes on well.

Although the possession of working capital is advantageous to the organization, having too much of the same is disadvantageous and can hinder the growth of the business. When there is excess working capital, then it is clear that the business is not utilizing the existing opportunities to grow and expand to optimum (Stiglitz, 2017). When the amount is negative, it can also hinder business operations. For instance, making late payments and increasing the number of debts that are owed by the business.

Lastly, some of the funds. Within the next five years will be used in facilitating acquisitions that the company will be capable of. Out of the library business, other businesses can be obtained. For example, a tutoring school is one of the businesses which can be acquired as a result of having the ready students who are ready to learn. The resources needed in the library need to be supplied. This is a tender or a business which can be acquired among other business. Acquisitions will ensure that the revenue collected over a given period is bigger.

Strategic Financial Plan for The Future

A buyout plan can be defined as the process of gradually gaining interest in a different business or company. This can be attained in two major ways. That is through controlling equity interests or through an outright purchase. This is one of the plans that are underway. Some opportunities might be presented, where the acquirer might feel like available assets are being undervalued. Capital utilized during a buyout is supplied by a person, companies, and pensions among other parties. This is among the existing strategic plan incase the management might be facing various issues. A buyout can be advantageous, in situations where normal management cannot solve the crisis at hand, or the resources available are limited. Buyout facilitates efficiency in service delivery, reduces competition from firms offering similar services. A buyout might increase the debt that the company has because extra money to finance the activities will be required. For instance, the process might require laying off some employees to minimize the expenses. This will be a move to ensure that the business remains profitable regardless of what is being attained. The debt might also be severe that some portions of the business will be required to be sold (Tutuncu, 2021). The process therefore ought to be taken with caution.

A fixed percentage of the revenue gained will be used in repaying any debt that the business will be having. Further business expansion plans will be funded once all other issues. Debt repayment allows the business to borrow other money, from the same lender. Hence the business can grow very first. Although the option of selling the business is always there after all other challenges have been faced, it is not the right plan to be underway. It should be the last option when all other decisions haven’t been attained.

References

Stiglitz, J. E. (2017). The dynamics of social inequalities in the present world. Retrieved from

https://academiccommons.columbia.edu/doi/10.7916/d8-w6gj-ks87

Tutuncu, L. (2021). Owner Managers, Family Business, and Earnings Management Preceding Management Buyouts. In Comparative Research on Earnings Management, Corporate Governance, and Economic Value (pp. 46-65). IGI Global. Retrieved from https://www.igi-global.com/chapter/owner-managers-family-business-and-earnings-management-preceding-management-buyouts/272605